The Ulster Farmers’ Union has expressed concern over the continued irregularity in the prices being paid to producers in Northern Ireland’s dairy industry and has called on all processors to address this urgently.
The call comes as early analysis indicates that the next UFU Milk Price Indicator figure is set to
 rise.
UFU deputy president Barclay Bell said: “The current UFU MPI figure is standing at 33.52ppl and all indications are that this figure should rise when the next MPI is set on 24 August.
“Locally, there are signs that we can expect to see the lowest paying processors raising their prices this month and since, as the UFU MPI suggests, the current market is strong we would expect to see prices rise quite considerably.
“The fact that in recent months many processors have continued to pay our producers well below the MPI figure is very disappointing. Milk volumes are recovering but some processors are not passing on a fair share of the returns to farmers, meaning that milk producers are not able to build a solid base for this coming winter.
“This irregularity in local prices has been on going now for nearly six months and many dairy farmers are feeling very short changed. Processors who say that they cannot afford to pay the price as indicated by the UFU MPI need to stop making excuses and step up to the mark or many farmers may start to vote with their feet. Global dairy markets are showing record returns from commodity markets so even those who are paying close to the UFU MPI figure are likely to be able to pay a higher price to their farmers.â€
Mr Bell concluded: “There is the old adage that says ‘one person’s misfortune is another one’s gain’ and this would appear to be the case with the New Zealand Clostridium scare.
“The Northern Ireland dairy industry has an opportunity to tap into new markets, particularly in China.
“If our processors were able to secure contracts in the Chinese market, this would be a massive boost for the industry and we would expect to see a significant rise in producer prices as well.â€
The next UFU MPI figure will be published on 24th August 2013.
Meanwhile, it’s shaping up to be another bad week for New Zealand’s dairy industry. China has banned the sale of a dairy product made by Westland Milk Products, New Zealand’s second largest milk processor, after tests seemingly revealed that it contained higher-than-permitted nitrate levels.
Adding to the woes of the Kiwi dairy sector has come the confirmation from Fonterra, New Zealand’s largest processor, that the company has received notification of a court order banning the sale, distribution and advertising of all its milk products to Sri Lanka for two weeks.
The injunction was brought by three individuals who work for the National Health Services Union in Sri Lanka.
The order was sought because there were Fonterra milk products still in the market suspected to be contaminated with dicyandiamide (DCD), despite an order from the Sri Lankan health ministry that they be recalled. DCD is a nitrate inhibitor used in fertilisers.
Source: Farming Life
“Locally, there are signs that we can expect to see the lowest paying processors raising their prices this month and since, as the UFU MPI suggests, the current market is strong we would expect to see prices rise quite considerably.
“The fact that in recent months many processors have continued to pay our producers well below the MPI figure is very disappointing. Milk volumes are recovering but some processors are not passing on a fair share of the returns to farmers, meaning that milk producers are not able to build a solid base for this coming winter.
“This irregularity in local prices has been on going now for nearly six months and many dairy farmers are feeling very short changed. Processors who say that they cannot afford to pay the price as indicated by the UFU MPI need to stop making excuses and step up to the mark or many farmers may start to vote with their feet. Global dairy markets are showing record returns from commodity markets so even those who are paying close to the UFU MPI figure are likely to be able to pay a higher price to their farmers.â€
Mr Bell concluded: “There is the old adage that says ‘one person’s misfortune is another one’s gain’ and this would appear to be the case with the New Zealand Clostridium scare.
“The Northern Ireland dairy industry has an opportunity to tap into new markets, particularly in China.
“If our processors were able to secure contracts in the Chinese market, this would be a massive boost for the industry and we would expect to see a significant rise in producer prices as well.â€
The next UFU MPI figure will be published on 24th August 2013.
Meanwhile, it’s shaping up to be another bad week for New Zealand’s dairy industry. China has banned the sale of a dairy product made by Westland Milk Products, New Zealand’s second largest milk processor, after tests seemingly revealed that it contained higher-than-permitted nitrate levels.
Adding to the woes of the Kiwi dairy sector has come the confirmation from Fonterra, New Zealand’s largest processor, that the company has received notification of a court order banning the sale, distribution and advertising of all its milk products to Sri Lanka for two weeks.
The injunction was brought by three individuals who work for the National Health Services Union in Sri Lanka.
The order was sought because there were Fonterra milk products still in the market suspected to be contaminated with dicyandiamide (DCD), despite an order from the Sri Lankan health ministry that they be recalled. DCD is a nitrate inhibitor used in fertilisers.
Source: Farming Life